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Course Post-Assessment CH 07
Williams Effective Management 6e
TRUE/FALSE
1. Historically, companies have generally followed the phase model of globalization.
2. The biggest disadvantage associated with licensing is that the licensor gives up control over the quality
of the good or service sold by the foreign licensee.
3. Global joint ventures can be difficult to manage because they represent a merging of four cultures.
MULTIPLE CHOICE
1. The two general kinds of trade barriers are:
a.
government import standards and industry import standards
b.
qualitative and quantitative barriers
c.
voluntary and involuntary barriers
d.
nationalistic and geocentric barriers
e.
tariff barriers and nontariff barriers
2. The trade agreement that represented the most significant change to the regulations governing global
trade during the 1990s was the:
a.
Maastricht Treaty of Europe
b.
North American Free Trade Agreement
c.
General Agreement on Tariffs and Trade
d.
Mercosur
e.
Asian Free Trade Arrangement
3. One of the major questions that a company must typically answer once it has decided to go global is:
a.
How many additional employees will the company need?
b.
To what extent should the company standardize or adapt business procedures?
c.
To what extent should a company abide by global or regional trade agreements?
d.
Will the organization's mission statement need to be changed?
e.
How many new shareholders will be influenced by global activities?
4. Which of the following represents the correct sequence for the phase model of globalization?
a.
exporting; wholly-owned affiliates; cooperative contracts; strategic alliances
b.
exporting; cooperative contracts; wholly-owned affiliates; strategic alliances
c.
exporting; cooperative contracts; strategic alliances; wholly-owned affiliates
d.
exporting; strategic alliances; cooperative contracts; wholly-owned affiliates
e.
home country sales; exporting; job ventures; strategic alliances, and direct investment
5. A country or region that has an attractive business climate for companies that want to go global has:
a.
easy access to growing markets
b.
experienced marketplace metamorphosis
c.
eliminated all political risks
d.
a limited infrastructure
e.
all of these
6. What are the two types of political risk that affect companies conducting global business?
a.
political uncertainty and policy uncertainty
b.
policy uncertainty and expropriation potential
c.
cultural strength and political risks
d.
infrastructure dynamism and political uncertainty
e.
nationalism and economic uncertainty
7. What are the strategies that can be used to minimize or adapt to the political risk inherent to global
business?
a.
protectionist, avoidance, and offensive strategies
b.
creative, cooperative, and defensive strategies
c.
cooperative, customary, and nationalistic strategies
d.
avoidance, protectionist, and guerrilla strategies
e.
control, avoidance, and cooperative strategies
8. Hofstede's research has shown there are:
a.
no cultural differences among nations in which Spanish is the national language
b.
two distinct methods for dealing with cultural differences--adaptation and continuation
c.
direct relationships existing between type of infrastructures and growth potential
d.
five consistent dimensions of cultural differences across countries
e.
four factors upon which a company should base its decision to globalize
9. The term ____ is used by Hofstede to describe the degree to which people in a country are
uncomfortable with unstructured, ambiguous, unpredictable situations.
a.
power distance
b.
masculinity
c.
short-term/long-term orientation
d.
uncertainty avoidance
e.
risk aversion
10. The purpose of predeparture language and cross-cultural training is to:
a.
cater to employees who require affective learning
b.
increase job empathy
c.
encourage job specialization
d.
reduce the uncertainty for those becoming expatriates
e.
avoid legal problems in the future
